Your answer is partially correct.

You are trying to choose between purchasing one of two machines for a factory. Machine A costs $$15,400$ to purchase and has a three$-$

year life. Machine B costs $$18,000$ to purchase but has a four$-$year life. Regardless of which machine you purchase, it will have to be

replaced at the end of its operating life. Assume a marginal tax rate of $21$ percent and a discount rate of $15$ percent.

Calculate the equivalent annual costs $($EAC$)$ of each machines. $($Do not round intermediate calculations. Round answers to $2$ decimal places,

e$.$g$.5,275\mathrm{.}25.)$

Equivalent Annual Cost $($EAC$)$ of machine $A$

Equivalent Annual Cost $($EAC$)$ of machine B

Which machine should you choose?

You should choose